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Yes indeed Roger, you have something there.
In some senses we are in a fortunate situation. In that the current increase in joblessness cuts across the ability and experience spectrum. It is not as if we have been digging canals all these years and have decided to stop and are left with a whole swathe of people with only that one skill and no alternative, but to promote more digging.
I cannot see a marked increase in the PAYE tax take through this, but we could get much that needs doing done, free-up enterprises to expand and contract and diversify as needs arise and make working pay.
BUT
Who would be to blame? Who the scapegoat?
It strikes me that we Britons, as a breed throughout history, thrive upon easy money. The major development over the last sixty years or so has been to broaden the access to such (relative) rich-pickings. You could not stick a pin in Britain's social-map and not strike a sector that employs much ingenuity and effort in getting something for nothing: Royalty, Peers, MPs, the professions (law, banking etc). The list, while not being quite endless is comprehensive in it's scope.
While we have a Government who's main thrust of policy is to only take us back ninety years to re-run the Great Depression, this time without the suicides in the banking sector, we shall see little or no improvement.
For the present, dear Roger, what you propose leaves me wondering what use would be made of any increase in the disposable income of the masses?
Increasingly these days we exist, as of old, with our only option in spending being The Company Store. We should all know where such a scenario leads.